CMG Holdings, Inc. v. AT&T Corp.

11 Mass. L. Rptr. 283
CourtMassachusetts Superior Court
DecidedFebruary 17, 2000
DocketNo. 992129E
StatusPublished
Cited by1 cases

This text of 11 Mass. L. Rptr. 283 (CMG Holdings, Inc. v. AT&T Corp.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CMG Holdings, Inc. v. AT&T Corp., 11 Mass. L. Rptr. 283 (Mass. Ct. App. 2000).

Opinion

Connolly, J.

CMG Holdings, Inc. f/k/a the Customer Management Group, Inc., and the Customer Management Group, LLC (collectively “plaintiffs”), have filed numerous claims against AT&T Corporation, Teleport Communications Group, Inc., and TCG CERFnet, Inc. (collectively “defendants”), arising out of the installation and maintenance of telecommunications services.

Plaintiffs have sued defendants for breach of contract, breach of covenant of good faith and fair dealing, intentional/negligent misrepresentation, false and deceptive trade practices, malicious interference with contractual relationship, negligence/failure to warn, and breach of warranty of merchantability. Defendants have now filed with this Court a motion to dismiss plaintiffs’ Complaint pursuant to Mass.R.Civ.P. 12(b)(6). As grounds thereof, defendants argue that the claims alleged in the Complaint are precluded by the terms of the applicable Tariff and the Service Agreement.

For the following reasons, defendants’ motion to dismiss is DENIED as to Counts I, Hand IV and ALLOWED as to Counts III, V, VI and VII.

BACKGROUND

Customer Management Group (“CMG”) is engaged in the business of providing customized operating solutions for identifying and improving customer profitability to companies throughout the United States and Canada. In the course of its business, CMG relies on various modes of telecommunication and information resources.1

In the fall of 1998, CMG began researching2 vendors for the installation and maintenance of various telecommunications services in conjunction with CMG’s relocation to its new offices located at 222 Berkeley Street, Boston, Massachusetts. While in communication with the various vendors, including AT&T Corporation (“AT&T”),3 CMG informed AT&T that it required its main corporate telephone number4 to have the capacity to handle several voice calls simultaneously. On September 30, 1998, AT&T forwarded a price quotation via facsimile to CMG. In its quotation, AT&T committed to providing data, facsimile and telephone services to CMG with no installation fee.

On October 2, 1998, CMG and AT&T executed a Service Agreement (the “Agreement”) under which AT&T agreed to install and service seven business lines for the corporate telephone number and one Internet line. The Agreement provides, in pertinent part, the following:

I. Payment and Installation . . . Provider [Defendants] will provide an estimated service date for services ordered. Provider will make reasonable efforts to install the Network Services by the estimated service date but shall have no liability to Customer in the event of delays . .5
II. Limitations on Liability. Except as provided for in Section 13 [which is the Credit for Service Interruption section], Provider shall have absolutely no liability of any kind whatsoever to Customer in connection with the Network Services or the Network or the other matters covered by this Agreement.
13. Credit for Service Interruption. [This section sets forth the applicable credits for service interruption.]
14. Miscellaneous. This Agreement and the attached Acceptable Use Policy constitute the entire agreement of the parties regarding the subject matter hereof . . . THERE ARE NO AGREEMENTS, WARRANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED EITHER IN FACT OR BY OPERATION OF LAW, STATUTORY OR OTHERWISE, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE OR USE WITH REGARD TO THE SERVICES OR THE NETWORK, EXCEPT THOSE EXPRESSLY SET FORTH HEREIN.

On October 14, 1998, AT&T told CMG that the necessary equipment would be delivered and installed at CMG’s offices by the close of the business day on October 19, 1998. However, AT&T was unable to meet this installation date. In late October 1998, AT&T scheduled the installation of the network data lines for [284]*284November 2, 1998. On November 2, 1998, AT&T informed CMG that the equipment needed for the installation of the network data lines was not available and that the scheduled installation would not take place as planned.

On multiple occasions, CMG reported various problems with AT&T’s services. On November 3 and November 5, 1998, CMG reported to AT&T problems with its telecommunications service including line quality problems. On November 5, 1998, AT&T informed CMG that it had improperly installed the analog lines. Although AT&T promised to provide a remote solution, the remote solution failed to resolve the problem.6

On November 7, 1998, CMG reported to AT&T that its telephone system was not functioning. On November 9, 1998, AT&T informed CMG that its telephone service had not been activated yet, possibly as a result of a clerical error. On November 9, 1998, CMG reported to AT&T that its telephone system was again out of service. On November 10, 1998, CMG reported to AT&T that the corporate telephone number gave false signals to incoming callers.7 On this same day, CMG reported to AT&T that it was having problems with the hunt group for its telecommunications services.

On November 11 and November 12, 1998, CMG reported to AT&T that its modem lines were not functioning properly. On November 12, 1998, CMG’s voice lines were restored. On November 12, 1998, CMG reported to AT&T that it had problems with its facsimile line.

Throughout mid- and late-November 1998, CMG attempted to obtain customer service from AT&T. However, AT&T informed CMG that it would not provide customer service to CMG until December 4, 1998.

On November 16, 1998, CMG reported to AT&T that the facsimile and modem lines were not functioning properly. On November 30, 1998, CMG called AT&T twice in an effort to report that CMG was unable to receive incoming telephone calls on its telecommunications system.

On December 9, 1998, CMG reported to AT&T that the telephone lines had not been functioning for fifteen minutes and that the Internet line had not been working for two days. The service was promptly restored.

From December 1998 through March 1999, CMG experienced similar interruptions in its telecommunications service. On fifteen separate occasions, CMG’s corporate telephone number, facsimile and data lines were inoperable for more than four hours at a time. On at least five occasions, the telecommunications system was inoperable for more than one full day; on numerous occasions the lines were of such poor quality that the telecommunications services, including, voice, facsimile, electronic mail, and Internet access, were unusable. Additionally, from October 1998 through March 1999, callers to the corporate telephone number were often disconnected or received misleading signals.8

As a result of the problems CMG experienced with the telecommunications system, CMG obtained cellular telephones in order to maintain communications with customers and to provide ongoing services for their customers. Also, employees of CMG began working from their homes in order to maintain voice and data access. In the meanwhile, CMG continued to pay rent, utilities and other expenses for its office space.

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Bluebook (online)
11 Mass. L. Rptr. 283, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cmg-holdings-inc-v-att-corp-masssuperct-2000.